Cayman financial institutions have been given two extra months this year to satisfy their notification and reporting obligations under the new OECD automatic exchange of tax-related information standard.
Announcing a “soft opening” for notification and reporting obligations under the Common Reporting Standard (CRS), the Cayman Islands’ Department for International Tax Cooperation said that for 2017 registrations only, registrations will be accepted up to June 30, 2017, without it considering compliance measures or penalties.
For 2017 reporting obligations, regarding 2016 data, compliance measures or penalties will not be considered in respect of reports that have been submitted and show the status “Accepted” by July 31, 2017, within the submission history page of the Cayman Islands online Automatic Exchange of Information portal.
The Department for International Tax Cooperation said the soft opening does not affect existing notification and reporting obligations and deadlines regarding the US’s Foreign Account Tax Compliance Act regime.
It has also clarified that reporting financial institutions will not have notification or reporting obligations this year under the agreement for the exchange of tax information between the UK and its Overseas Dependencies, as these obligations have been superseded by corresponding obligations under the CRS.